Location: Panama City, FL | Metro: Walton County, FL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,590 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $334,842 | 0.51% | F |
| 2BR | $1,860 | $451,699 | 0.41% | F |
| 3BR | $2,370 | $548,187 | 0.43% | F |
| 4BR | $2,890 | $707,752 | 0.41% | F |
| 5BR | $3,352 | $1,538,929 | 0.22% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 32413, which encompasses Panama City Beach and Panama City, FL, is nearly balanced. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1600, while the market rent, as indicated by the Zillow Observed Rental Index (ZORI), is slightly higher at $1,635. This minor discrepancy suggests that properties priced at the FMR level will remain competitive but may see slight pressure to adjust upwards to meet market rates.
Acquisition in this area is moderately affordable. With a median home value of $467,263, potential investors can find homes within their budget, especially when considering the low 0.2% share of homes experiencing price cuts and a 90-day Days on Market (DOM) average. These figures indicate a stable market where homes are generally selling without significant reductions, making it a reliable environment for investment.
Tenant demand is robust in ZIP 32413. The area has a population of 15,453, with 29.8% of residents being renters. This substantial rental market provides a solid base for finding tenants, ensuring that properties can be filled relatively quickly and sustainably.
Verdict: ZIP 32413 presents a viable opportunity for landlords and small-portfolio investors. The rent math is favorable, with only a slight adjustment needed to align with market conditions. Acquisition costs are reasonable, supported by a stable housing market, and tenant demand is strong enough to fill vacancies efficiently. Investors should expect to maintain properties close to the FMR of $1600 to stay competitive while benefiting from a population that leans heavily towards renting.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.